Churchill Way Estates Limited - Period Ending 2020-03-31

Churchill Way Estates Limited

(Registration number: 10287960)
Balance Sheet as at 31 March 2020

	Note	2020 £	2019 £
Fixed assets
Investment property	3	8,000,000	4,288,229
Current assets
Debtors	4	5,923	14,813
Cash at bank and in hand		152,933	141
		158,856	14,954
Creditors: Amounts falling due within one year	5	(6,190,342)	(4,095,170)
Net current liabilities		(6,031,486)	(4,080,216)
Total assets less current liabilities		1,968,514	208,013
Provisions for liabilities		(335,866)	(1,003)
Net assets		1,632,648	207,010
Capital and reserves
Called up share capital	6	30	30
Profit and loss account		1,632,618	206,980
Total equity		1,632,648	207,010

For the financial year ending 31 March 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 13 July 2020 and signed on its behalf by:
 

Churchill Way Estates Limited

(Registration number: 10287960)
Balance Sheet as at 31 March 2020

Mr G Lane
Company secretary and director

Churchill Way Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020

1	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Churchill Way Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Financial Instruments

Classification

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Debt instruments are subsequently measured at amortised cost.

Churchill Way Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020

Impairment

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

2	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 3 (2019 - 3).

3	Investment properties

	2020 £
At 1 April 2019	4,288,229
Additions	2,099,106
Fair value adjustments	1,612,665
At 31 March 2020	8,000,000

An independent valuation was carried out in September 2019.

4

Debtors

	2020 £	2019 £
Prepayments	413	-
Other debtors	5,510	14,813
	5,923	14,813

Churchill Way Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020

5

Creditors

Creditors: amounts falling due within one year

	2020 £	2019 £
Due within one year
Trade creditors	8,223	-
Accruals and deferred income	140,379	3,900
Other creditors	6,041,740	4,091,270
	6,190,342	4,095,170

6	Share capital

Allotted, called up and fully paid shares

	2020		2019
	No.	£	No.	£
Ordinary A of £1 each	10	10	10	10
Ordinary B of £1 each	10	10	10	10
Ordinary C of £1 each	10	10	10	10
	30	30	30	30

7	Non adjusting events after the financial period

Subsequent to the year end the worldwide economy has been affected by the Covid-19 virus outbreak, affecting the trading ability of the company. The directors believe that at the date of signing the financial statements the company had adequate cash reserves, to meet its liabilities as and when they fall due. Therefore the directors confirm that financial statements have been prepared on a going concern basis.